The 30-year-old failed to display his best form for Arsenal last season and has just one year remaining on his present deal.
He has held talks with the Gunners board over a 12-month extension but as yet, a deal has not been concluded.
Rumours have been circulating that the diminutive playmaker could be heading for Real Madrid, but he has steadfastly rejected that rumour.
"They are things invented on the internet," he told the Evening Standard.
"More than one time I have said that this season I will play in Arsenal colours. I would not play for Real Madrid for all the money in the world.
"For me, Real is a complete taboo because I'm an admirer of Barcelona."
The Russia captain has also been linked a move back to his homeland with ambitious Makhachkala.
They were taken over by Russian billionaire Suleyman Kerimov in January, and are now trying to attract some of Europe's stellar names to their project.
Inter Milan's Samuel Eto'o has been approached about signing for the club and Arshavin also has been linked.
But he stresses they would be wasting their time if they contacted him.
He told Sport Express newspaper: "I've already said, and can only repeat, that this season I will be at Arsenal.
"I haven't received any proposals from Makhachkala. I have not had any contact with the club or its representatives.
"If I ever return to Russia, then the priority option for me will be Zenit - but no-one can predict what will happen to you in the future, in a few years or even a season. As the saying goes: if you want to make God laugh - tell him about your plans for tomorrow."
Arshavin also admits it would be an "enormous" loss for Arsenal to see captain Cesc Fabregas and Samir Nasri leave, but insists focus must remain on ending the Gunners' trophy drought.
Barcelona are looking to complete the transfer of their former trainee before the new Premier League starts this weekend, but Arsenal remain steadfast in a £40million valuation.
France international Nasri has yet to agree a contract extension with Manchester City ready to offer £22m for the midfielder, who could leave on a free next summer.
"The policy of our club [next season] is the same, but it is difficult to say anything specific now, not least from the fact that two leading players, Cesc and Samir, have not decided their future," Arshavin said in an interview with Russian newspaper Sport Express.
"The loss of any one of them would be enormous, and we naturally want to see Cesc and Samir play with us in the future - but if the player wants to leave the club....
"It is hard to say [whether they will stay]."
With or without key men Fabregas and Nasri, Arshavin accepts Arsenal will face a testing campaign ahead as they look to remain competitive.
"The season will very difficult. I think that six teams will challenge for the top spot," he said.
"The main thing, though, is to win any title with Arsenal."